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Aussie stocks boom as Wall Street sniffs end of virus bargains

Published: (Updated: ) in Australian News by .

Despite a weak US dollar the ASX 200 has followed Wall Street into the black, rallying almost 3 per cent in early trade.

The Australian share market has jumped more than 3.0 per cent in early trade, taking the lead from strong gains on Wall Street overnight.

The S&P/ASX200 benchmark index was up 179.1 points, or 2.99 per cent, at 6177.8 points after the first 30 minutes of trade on Tuesday but had risen as much as 200 points earlier.

The All Ordinaries index was 179.8 points, or 2.94 per cent higher, at 6296.3.

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"The US dollar weakened again, but commodity currencies, crude oil, copper and many major share market indices are at three month highs as central bank stimulus and re-opening optimism drive market action," CMC chief market strategist Michael McCarthy said in a note.

Gains were led by the financial sector, which surged by 4.93 per cent, followed by energy, up 4.87 per cent.

Property and industrials were other notable performers, up 4.2 and 3.79 per cent respectively.

Only the health sector index was in negative territory, down 1.37 per cent.

Among the big four banks, ANZ was up 6.22 per cent to $21.00, the Commonwealth Bank picked up 4.64 per cent to $71.92, NAB rose by 5.44 per cent to $20.54 and Westpac gained 5.99 per cent to $19.91.

Smaller rivals Bendigo Bank and the Bank of Queensland gained more 8.0 per cent.

Energy shares were up after crude oil prices crossed the $US40 a barrel mark.

Santos surged 7.3 per cent to $6.17 after the Queensland government gave the final approval required for the Mahalo gas project.

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Origin Energy is also involved in the project in central Queensland, and its shares gained 3.77 per cent to $6.46.

There were big gains for materials shares too.

BlueScope Steel was up 6.22 per cent to $13.14, BHP rose 4.21 per cent to $37.86, Rio Tinto was up 3.57 per cent to $102.12 and Fortescue climbed 4.4 per cent to hit an all-time high of $15.18.

Wesfarmers shares were up 0.94 per cent to $42.10 after it reported booming sales at Bunnings and Officeworks in the second half of the financial year.

In health, CSL shares lost 2.57 per cent to $278 even as it announced the acquisition of Canadian clinical-stage biotechnology company Vitaeris for its research into treating the leading cause of rejection for transplanted kidneys.

Overnight, the Nasdaq closed at a record high, becoming the first of the major US indexes to confirm a new bull market, while the Dow and S&P 500 also jumped on expectations for a swift recovery from a coronavirus-driven downturn.

A closely-watched monthly jobs report on Friday showed an unexpected fall in the unemployment rate, bolstering views that the worst of the economic damage from the virus outbreak was over.

Meanwhile, the Australian dollar has continued to climb after stronger risk appetite among investors helped it touch its highest level since July last year.

It was buying 70.34 US cents at 1030 AEST, up from Friday's close of 70.02 US cents.

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Source: 9News

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